On April 26, 2018, the IRS released Revenue Procedure 2018-27, which provides relief for individuals with family coverage under a high deductible health plan (HDHP) by allowing them to treat $6,900 as the maximum deductible Health Savings Account (HSA) contribution. This supersedes Revenue Procedure 2018-18 which reduced the amount to $6,850. The IRS and Treasury Department indicated that this is in the best interest of sound and efficient tax administration as a result of unanticipated administrative and financial burdens of the reduction. This procedure also provides guidance and clarification for those taxpayers who received distributions of an excess contribution based on the $6,850 amount and indicating that taxpayers may treat the distribution as a mistake and re-contribute the funds into the HSA without tax consequences.
